Treble Damages, Punitive Damages, Costs and Fees
I have previously mentioned the potentially devastating impact of RICO on a defendant. The RICO arsenal includes the prospect of treble damages, punitive damages and the right to recover attorney fees and litigation costs. At first blush, you might think that treble damages are the big hammer, but sometimes an award of costs and fees may carry greater financial consequences. This can occur because it is very difficult and expensive to prosecute a civil RICO case. Fees and costs usually run to more than $100,000 and sometimes exceed $1 million. Obviously, the risks to both plaintiff and defendant are enormous. No civil RICO case should be filed or pursued unless the clients on both sides have carefully considered the risks after a thorough evaluation of the relevant facts and applicable law. No doubt, these risks result in the vast majority of civil RICO cases settling. Very few actually get to trial.
To demonstrate how huge an award of attorneys fees can be in relation to actual damages you may want to look at this recent case
Dahlgren v. First National Bank of Holdrege, Slip Copy, 2007 WL 397009, RICO Bus.Disp.Guide 11,225, , D.Neb., February 01, 2007
Jeanelle Lust
www.knudsenlaw.com
Think the RICO act would apply in this case. My brother and I purchased variable annuities from two agents working together. The guaranteed 6.5 percent interest with no loss of principal and they signed a contract that we wrote out to this effect. We also have them on tape stating the same thing. Long story short the principal was not guaranteed. They pulled the same deal on five people we know of which includes us. All this happen over a three year period. I am quite sure we could find other people that they pulled this on.